The global supply chain has been disrupted by the epidemic and the outbreak of the Russian-Ukrainian war has led to shortages of scarce resources, including rare earths, forcing manufacturers that rely on these raw materials to raise prices or find alternative sources.

The Nikkei Asian Review reported on the 18th that Japanese automotive lithium battery manufacturer Envision AESC has asked Nissan and other customers to accept a 10% price increase in the spring of 2022. The rise in the price of lithium hydroxide, a key material for lithium batteries, is the reason why Envision AESC decided to increase the price. Russia accounts for about 6% of the world's lithium hydroxide exports.

The high-purity lithium used in car batteries is currently in extreme shortage. The report quoted industry executives as pointing out that lithium prices have soared nearly 10 times in the past year. Prices of metals such as nickel and copper also rose simultaneously. That puts pressure on battery makers to pass the cost on to customers.

Manufacturers are reportedly particularly concerned about Russian supplies of rare earths. Kawasaki Heavy Industries is considering sourcing titanium for aircraft from countries other than Russia. Russia's titanium output accounts for more than 40% of the world's total. Boeing, which purchased airframes from Kawasaki, has stopped importing titanium from Russia. Although Kawasaki can still successfully purchase titanium from Russia, the company is worried about political risks